By Ray Birch
LATHRUP VILLAGE, Mich.—One credit union that never closed it lobbies during the health crisis says its reputation—and business—have never been stronger as a result.
The $1.3-billion Michigan First CU kept all of its 30 offices open, and in doing so saw record business results, according to CEO Michael Poulos.
“We actually had our highest number of new accounts during this four month-period than we ever had in our history,” Poulos said. “We are getting a lot of new accounts and new members who have come to us and said their financial institution was closed.”
The accounts are not from risky consumers unwanted elsewhere; delinquency and charge-offs are at an all-time low and the bottom line is strong, said Poulos.
“We are having our best lending results in years,” he said. “We have a very ambitious lending goal each year, and through three quarters of the year we have already passed that objective.”
Poulos acknowledged the move has not been easy, but he, and the rest of the credit union’s leadership, believe the decision to keep lobbies open was the right one for the membership.
“We did not follow the crowd and close branches and send everyone home to work. Everyone stayed in the office,” explained Poulos, who added the credit union believes staff working from home pose a security risk. “We recognized, first of all, that the credit union is owned by the members and exists to serve members. It is not our role, or within our rights, to arbitrarily close down branches and restrict services to the owners. It is our responsibility to figure out how we can continue to serve them.”
The Key Objective
Poulos said the key objective was to make doing business with Michigan First feel as normal as possible for members.
“Our branches remained open with the only real change of adding appointments for a period of time so we could regulate staffing,” said Poulos. “We did ask members for their help. We asked them if they had to speak with one of our team that they try to schedule the appointment, which helped with addressing traffic in the branches and just doing business. But teller transactions, for example, were simply business as usual. And if someone could not make an appointment, we took them as a walk-in. We never turned one member away.”
Poulos said the decision was all about its commitment to members and staff.
“We assured our team that no one would be laid off as a result of the pandemic,” he said. “We did not want our employees to worry. There was enough general fear and panic just from the health crisis.”
Most Haven’t Asked for Help
Beyond remaining open, Michigan First has offered assistance to members in the form of payment forbearances, fee waivers and more. Poulos said much of the help was delivered based on need.
“We didn't do it on blanket basis,” he told CUToday.info. “We invited our members to come talk to us if they had difficulties. But a large majority of our members were still employed and did not need or want help.”
With all staff—more than 500—on hand to provide assistance, Poulos said the credit union was fortunate to have a large main office so it could socially distance the backoffice staff and meet Centers for Disease Control (CDC) requirements. The credit union also put in place safety measures in member contact areas as outlined by the CDC.
Michael Poulos
“We gave employees the choice if they wanted more space, and some did not. It was up to them,” he said.
Some Test Positive
A few employees have contracted COVID-19 since March, Poulos said.
“We handled these cases exactly as you’re supposed to,” said Poulos. “We identified those who also could have also been infected, and we closely monitored them for symptoms. Those who got COVID were sent home for the proper quarantine period and could not come back until they had two negative tests for COVID-19. This has worked very well, and we are also very confident that anyone who contracted the virus got it from outside the credit union.”
Poulos applauded the courage and dedication of his employees, saying they have proven to be “battle tested and strong” during the crisis. He added the entire leadership team has remained in the office, as well.
“One of the things that we know is that we always lead from the front and we could never, ever ask any team member to do something that we wouldn't do ourselves,” said Poulos.
Strong Reputation
Poulos said Michigan First’s reputation has never been stronger and he expects that will translate into even more business when the health crisis eventually fades away.
“We’ve had many members come into our office and thank us for keeping our doors open,” said Poulos. “We felt from the start that when this crisis hit, when all of the businesses in Michigan were shutting down, we had to convey strongly we were not doing that. We did not want members to lose any confidence in us or think they could not get their funds. So we needed to convey to them in every possible way that we are open and available and still here to serve them.”